For example, California Labor Code Section 2802 imposes broad obligations on employers to cover their employees business expenses, which could include at least part of the costs of a wireless voice and data plan if the employee is permitted or required to use a personal device for work. However, Labor Code section 2802 does not contain any language expressly stating that it applies to public entities, and at least two California Courts of Appeal have held that public entities are not subject to general Labor Code … The eleven factor test to determine if training time is compensable under California law, Uber class action certified, five takeaways for California employers, Five wage deductions California employers cannot make, Five statutes that can shift attorney’s fees to employers, Personal cell phones at work: Five lessons employers should take away about expense reimbursement set forth in Cochran v. Schwan’s Home Services, Areas employers should review as part of their yearly audit – part two. These types of labor laws are not strictly specific to California. Obligations of Employer Section 2802 Gone are the days of hand-written paper mileage logs and time-consuming expense reports. For that reason, other states in the U.S. have already begun to follow California’s lead. Types of Expenses In fact, employees throughout California may be owed significant compensation for basic work-from-home expenses. California Employment law requires employers to reimburse employees for all “necessary” expenses they incur while performing their jobs. The penalty amounts and procedures applicable to “expenses” are … Thus, to be in compliance with section 2802, the employer must pay some reasonable percentage of the employee’s cell phone bill. The general reimbursement statute of the California Labor Code is Section 2802. Employers can basically ignore this general rule…, Colin Cochran brought a putative class action against his employers, Schwan’s Home Service, on behalf of 1,500 customer service managers who were not reimbursed for expenses pertaining to the work-related use of their personal cell phones. Employers that do not closely abided by this law suffer the consequences. Grave consequences accompany inaccurate or unjustifiable reimbursements for employees. With Motus, accurately capturing business mileage has never been faster or easier. Motus does not intended to provide, and should not be relied upon for, tax, legal, or accounting advice. Employers that do not closely abided by this law suffer the consequences. The new Illinois law mirrors key language in California Labor Code Section 2802, California's expense reimbursement law. This law states that employers should reimburse employees for each and every expense that they incur throughout the course of doing business. employee. REIMBURSEMENT OF EXPENSES Employers must reimburse employees for losses and reasonable expenses incurred in the performance of the employee’s job duties. CA 2802. Motus does not provide tax, legal, or accounting advice. The purpose of this statute is "to prevent employers from passing their operating expenses on to their employees." This post discusses more generally what employers should audit on a yearly basis. California Labor Code § 2802. 2014), the court held that Labor Code section 2802 also applied to non-California residents that performed work in the state. Fixed and Variable Rate Program with Motus Mileage Capture App Saves Time and Money, Leveling the Playing Field: Recruit Top Talent With a Better Mileage Reimbursement Program, What's Your Fleet Really Costing You? Labor Code § 2802 Reimbursement Claim Elements. In law school, attorneys-to-be are taught to “issue spot,” and the unfortunate litigation landscape that faces California employers, business owners and their supervisors must also “issue spot” and…, Employers that utilize interns, or who provide training to individuals that may lead to employment run the risk of having these individuals qualify as an employee, which would require the employer to comply with Labor Code requirements such as minimum wage, meal and rest breaks, and overtime pay. Motus Releases 2021 Predictions on Remote Work, Vehicles, Drivers and Business Devices, BYOD, CYOD and COPE: Differences, Drawbacks and Benefits, Arriver Services: The Rise of Services Delivered to Your Doorstep, The Importance of a Cost of Living Comparison, Vehicle Depreciation in 2020: How the Pandemic Has Affected the Auto Industry, some of which can reach close to seven figures, fair, accurate and defensible vehicle programs that will be beneficial in the long run. or losses incurred by the employee in direct consequence of the discharge of his or. Employers desire increased transparency into the reimbursements it is distributing. Download our white paper to learn more about California 2802. As Chief Legal Officer, Danielle is responsible for all Motus legal affairs and works with strategic business units to drive initiatives that bolster IRS and legal compliance for Motus clients. 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